AfricaPress-Tanzania: HIGHER exports of goods and services contributed to the decline of Current
Account deficit by nearly half to 895.9 million US dollars in the year ending February from 1,757.8 million US dollars in the corresponding period 2019.
The Bank of Tanzania latest monthly report shows that the value of exports of goods and services rose to 9,952.0 million US dollars compared with 8,568.1 million US dollars in the corresponding period in 2019 owing to increase in both goods exports and service receipts.
During the period, the overall balance of payments recorded a surplus of 560.3 million US dollars compared to a deficit of 682.7 million US dollars in the year ending February 2019.
The value of traditional exports rose by 66.9 percent to 983.4 million US dollars in the year ending February 2020 from USD 589.1 million in the corresponding period in 2019, following increased exports value for all traditional exports save for coffee on account of increase in both volume and unit prices.
The increase in export values for cotton, sisal and cloves was mainly due to improved export volumes, supported by good weather during the crop season.
Conversely, coffee, tea and tobacco decreased on account of low export volume and unit prices.
The value of non-traditional exports increased to 4,164.5 million US dollars in the year ending February compared to 3,480.5 million US dollars in the corresponding period in 2019, following an increase in all non-traditional export categories with the exception of diamond, manufactured goods, fish and fish products.
Gold accounted for 54.1 percent of non-traditional exports and increased by 33.5 percent to 2,252.9 million US dollars resulting from increase in volume and unit price.
The increase in volume of exported gold is partly associated with continued government initiatives to develop domestic markets for minerals.
Service receipts amounted to 4,289.3 million US dollars in the year ending February which is higher than 4,091.6 million US dollars in the corresponding period in 2019, owing to increase in travel receipts.
Travel receipts rose by 4.9 percent to 2,628.3 million US dollars partly explained by increased number of tourist arrivals. Service receipts accounted for 43.1 percent of total export of goods and services.
